EMS Find Inc (OTCMKTS:EMSF) Crashes Back Down Despite PR

At the end of Friday’s trading the stock of EMS Find Inc (OTCMKTS:EMSF) inexplicably rushed upwards and managed to close the session just below $1 per share for a gain of over 35%. As we warned you in our previous article the impressive outcome wasn’t supported by absolutely anything and approaching the stock has remained as dangerous as ever.

Well, when the market resumed trading yesterday EMSF did publish a new PR. The company announced the launch of an entertainment on demand OTT platform through their newly formed subsidiary – Viva Entertainment Group. Now with a solid announcement backing the ticker one would expect EMSF to climb even higher up the chart but instead the exact opposite happened.

EMSF got crushed to the ground not only wiping the entirety of their Friday’s gains but dropping even lower. The ticker slashed 30% of its value and closed at $0.70. It should be noted that the crash took place on volume nearly three times bigger than shares traded on Friday. In fact the 241 thousand shares traded by investors yesterday are the biggest daily volume registered by the company since July.

At the current market price of their stock EMSF have a market cap of $20 million. Although not that big can such a valuation be justified by the company’s fundamentals? We will leave the answer up to you after you take just a brief glance at the latest financial results reported by EMSF. According to the annual report submitted at the end of September as of June 30 the company had:

• $45,843 cash and total current assets
• $74,276 total assets
• $180 thousand total liabilities
• ZERO revenues
• $325 thousand net loss

It is true that the current company was formed just several months ago, at the end of March, through a merger but the depressing balance sheet is far too serious to be taken lightly.

Investors should also keep in mind that just until recently EMSF were targeted by a paid pump involving the creation of a landing page and the distribution of hard mailer brochures. The shares that were most likely being liquidated on the open market during the promotion were the 18 million shares that were bought by a group of investors at a split-adjusted price of just $0.02.

EMSF simply demands the use of caution. The volatility of the stock shouldn’t be underestimated and any trades should be preceded by extensive due diligence. 

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